Interesting article about Oil

wanghong

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Below is an Interesting article I found, which says that.....Do not
+ }8 k; E4 r+ X& \expect much from Crude Oil producers and future is not with the
. q! {6 X. S3 d2 y: Z2 D: Tcompanies producing Jet fuels but Biofuels. Also no wonder if some of
# O- R% D8 n9 j, [& T+ Z% sthese oil producer will go bankrupt or out of the business even if
. H% y0 o, s; X3 R3 p7 K8 C6 |crude prices improves. This implies also to good names such as Shell,
EXXON, BG, BP, Cheveron ....xyz.. oils

! c0 m/ Z; x* ]" BRecently OPEC reduced crude oil production twice over just a few
3 z* c" ?) G" m: B: v% {; v' V4 Pmonths. There are three wars going on in Gaza, Iraq and Afghandistan.
A year ago these things would have spiked the price of crude oil by at
least $50.00 per barrel. Today, oil price declined by a record amount.

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There are several reasons the price of oil is decreasing in the face
( g3 D. R) |* Iof so much news. These reasons are:

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1. New oil has been found in Canada, Montana, North & South Dakota and
in the ocean near Brazil. Each of these oil fields has more oil than
3 Z# y6 N3 ?- w6 j  J$ @& U) zArabia.

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2. New natural gas has been found in Pennsylvania and West Virginia.
7 Z) \3 J. E( P: Z# cThis is the largest find in North America.
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5 W# a7 j; \" t; h( g3. New methods of injecting CO2 and surfactants into oil wells is
2 ^! q; Z% Z7 \being used to double their output.


4. Production of bio-fuels is beginning to reach critical mass. Bio
fuel is being produced from many plants and algae. The production
potential per acre in some cases is astounding. Many countries are
9 q) B* E# Q$ u( z# E" _racing to produce bio fuels.
$ q$ ]; F6 ]( x7 [( y: o$ |% @" s
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5. Virtually every restaurant in the US and all food processing plants
are now selling their used oil to bio-diesel producers. Every pork,
cattle, turkey and chicken processing plant will soon sell their fat
, R  m2 m  p6 u8 [, Yto bio-diesel producers. One pork processing plant in Oklahoma is
* R* E2 W: T0 ^, A) {: R& Rproducing 30,000 gallons of bio-diesel per day from pork fat.
8 l* J4 I+ F& s

8 h) v: ^" c0 j6. There are 99 nuclear reactors in various stages of planning and
1 ^$ w  v! M3 r+ Y: Y% \* Yconstruction around the world at this time. Several hundred more are
expected to be built in the future. Much of the energy they produce
0 }9 k% P$ }, Iwill replace oil.
5 L: r: S2 ]. ?9 ?8 |* d( S

7. Every company in any form of transportaion business is replacing
older equipment such as trucks, airplanes, train engines, ships, etc.
0 {# Z" O/ G- B( r) awith new more fuel efficient equipment. Airlines and railway companies
  M. R7 C! a0 G5 x2 uare experiencing 20% to 25% better fuel econony with the new
equipment.
5 L: e; q2 X7 [0 M4 N! ]
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6 g* v9 q  Y5 ]) C2 h8 _Airlines are flying airplanes with bio-fuel. They are finding the bio-
9 @3 W+ I  O. H- V( a0 ffuel is cleaner and performs better than jet fuel.
/ [  Q0 S7 n, _, o) Z) |( Y$ [
1 m8 f3 f, F  U8 k- M5 l
; k0 T! ]" f" k, c8. Cities and counties throughout the US are selling the rights to
capture methane gas from landfills. This is a huge source of gas
available at very little cost or risk. The gas is displacing crude
oil.

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$ m5 T, Y% c( d% c: c# T. a9. Coal is being transformed into a clean burning liquid fuel. The CO2
produced as a byproduct is sold to oil companies for injection into
* _2 ?( c/ I3 W/ Qoil wells.
7 i) z( H% h, i8 t8 r

( ?/ |3 \& F# ^; C  Y1 @10. Solar, wind and ocean energy is displacing oil as an energy
! w3 @1 s" R5 T5 o: j% E" h; v( Qsource. Three new wind turbines are being erected every day in the US.
2 y* h1 |1 ?0 `$ _/ @; {% w

Each of the above by itself will not make a large difference in the
price of crude oil but the sum of all of them together is world
- x2 E- x0 L7 ]$ x# x4 ~( Ychanging. The important thing is that OPEC no longer has the ability
to control oil prices.
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With the above scenario, I still believe that there are under
performed OIL companies and probably they are yet to get the justified
8 k, F/ w# r+ ~/ n$ gvalue .....
) I: k: X& Z% s; B$ J- eIAE- Ithaca , EPL Energy Partners Ltd, Opti etc ...
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The above articles are from WSJ .............PUBLISHED ON 9TH JAN
2009 ... FYI-Only